The boss of Fortescue Metals has slammed anti China comments by businessman and federal MP, Clive Palmer, as the iron ore miner posted a record annual profit on higher shipments to Chinese customers.

Speaking on a conference call with journalists, FMG chief executive Nev Power criticised remarks made on Monday by Mr Palmer on the ABC's Q&A program where he called the Chinese Government "mongrels" who shoot their own people.

"It just sounded like a bit of ranting and raving," said Mr Power.

"I'm sure that the Chinese will dismiss them for what they are, but clearly they are unhelpful and don't do a lot to build the strong relationship that we already have."

The iron ore miner says after tax profit for the 2014 financial year has jumped by more than half to $US2.73 billion because of a big ramp up in production and cost cutting.

Revenue surged by 45 per cent to $US11.75 billion as FMG reached its long held target of producing 155 million tonnes a year.

The result comes despite iron ore prices falling by one third this year with the steel making ingredient trading at around $US93 a tonne.

'Massive year of delivery'

The miner shipped a record amount of iron ore, 124.2 million tonnes up by 54 per cent from 2013.

Investment house UBS says FMG's all up cost of production is $US84 a tonne and it has been offering discounts to steelmakers for lower quality iron ore.

The lower Australian dollar and greater production capacity helped reduce costs.

"We are continuing to focus on costs and productivities and that is delivering on our journey to take the company down the global cost curve," he said.

He says that, over the year, Fortescue sold its iron ore for an average price of $US106 per dry metric tonne, a 14 per cent discount to the benchmark price for higher grade iron ore.

Mr Power says that iron ore prices had been constant recently at $US95.

"We have seen the market start to rebalance, with higher cost Chinese production ceasing and port stocks beginning to decline," he said.

Mr Power says FMG is confident about China's prospects and expected economic growth to remain above 7 per cent per year.

However, he warns that the costs of a potential strike at the Port Hedland, the country's biggest iron ore export port, could cost the company $40 million a day.

Tugboat crews, who help ferry the giant iron ore carriers in and out of Port Hedland harbour, have threatened to strike over wages and conditions.

Mr Power says it is all quiet on the strike front at the moment with negotiations continuing between tugboat operator, Teekay, and three maritime unions.

"We remain hopeful that a sensible solution will be arrived at," he said.

"In the meantime there have been no stoppages or interruptions to shipping through Port Hedland."

Safety issues

Mr Power says he has no comment about a guilty plea by a contractor after the death of an electrician at FMG's Christmas Creek mine last year.

The contractor had been taken to court by WA's mining regulator.

Mr Power says an internal review of safety had been used to improve procedures with a focus on the management of contractors.

"It is an ongoing journey to make sure that we have the best possible procedures and policies in place to ensure the the safety of everybody that comes onto a Fortescue site," he said on the conference call.

Earlier in the year, the WA Department of Mines & Petroleum ordered FMG to improve safety at all its mines, and issued a number of safety notices after an investigation.

Mr Power declined to go into detail about the notices.

"They ranged across a number of sites and a number of issues," he said.

"There was nothing in there that has caused any long term ongoing issues in the business.